Financial reporting and corporate innovation: a review of the international literature. (22nd February 2021)

• Record Type: Journal Article
• Authors: Huang, Hedy Jiaying; Habib, Ahsan; Sun, Sophia Li; Liu, Ying; Guo, Huiting
• Is Part Of: Accounting and finance. Volume 61:Number 4(2021)
• Page Start: 5439
• Page End: 5499
• Publication Date: 2021-02-22
• Subjects: Innovation -- Corporate transparency -- Corporate governance -- Financial development; Accounting -- Periodicals; Finance -- Periodicals; 657.05
• DOI: 10.1111/acfi.12764
• Languages: English
• ISSNs: 0810-5391

Abstract

Abstract: We synthesise the empirical studies on innovation in the accounting, finance, and corporate governance disciplines using Bushman and Smith's corporate transparency framework as our theoretical lens. The review presents competing findings on the association between financial reporting and innovation. Most of the reviewed studies fail to address the critical question of how the financial reporting system affects the interactions among financial development, corporate governance and innovation. We suggest future research, ranging from enriching the theoretical perspectives to incorporating the future of innovation research in the COVID‐19 environment.